According to insurance company Aviva, 10% of adults aged 35 to 45 in the UK plan to buy an investment property within the next 12 months.
But rising house prices in recent months mean it’s becoming increasingly expensive to become a landlord.
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This also means that it becomes increasingly difficult to make a profit in certain regions, given all the costs and expenses.
If you’re an investor looking to make money by becoming a landlord, you might be better off researching the best areas across the UK in terms of property value and return on investment (ROI).
New research reveals the best cities for property investment in the UK, with some areas offering returns of up to £6,000 and an ROI of nearly 3%.
Coulters Property compares average house prices and mortgage repayments to average monthly rental costs, calculates annual profits and ROI, and reveals the best areas to invest in property in the UK.
Top 10 UK cities with the best ROI for landlords
RankCity Annual Revenue (pounds)% ROI 1 Preston £5,2562.98%2 Coventry £6,0332.74%3 Glasgow £4,8362.67%4 Swansea £4,4782.54%5 Dundee £3,9652.47%6 Manchester £5,0152.14%7 Paisley £2,7462.12%8 Leeds £4,3391.90%9 York £5,4051.85%10 Stoke-on-Trent £2,4811.73%
The city of Preston in Lancashire offers the best return on investment. The average home sale price is £176,378, while the average rental price is £981 PCM. This would net the landlord £438 per month or £5,256 per year, giving an ROI of 2.98%.
Coventry comes in second with an average ROI of 2.74%, followed closely by Glasgow with an average ROI of 2.67%.
Scotland ranks very well within the top 10, with three Scottish regions making the cut. Glasgow, Dundee and Paisley all offer excellent returns on investment for landlords.
A few years ago, London was front and center for real estate portfolios, but with prices in the capital so high, investors may be advised to look elsewhere.
